Professional Documents
Culture Documents
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
* The country’s strategic location: it repre- * There are infrastructure and services
sents an entrance to the African continent facilitates which could be modernized
from the east direction, is neighboring nine such as roads, railways, airways, sea
African countries and facing the Red Sea a ports, free zones, electricity, banking
matter that renders it a center for the inter- sector, qualified educational and health
national markets institutions.
* Has rich natural resources such as arable * The country enjoys political stability, par-
lands, forests, pasture, animal wealth, gold, ticularly after the realization of peace in
and oil in addition to a trained and low-paid southern Sudan.
labor force.
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Developments in Economic Policies
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
IMF in the year 2000 as well as with the Arab lent of $ 300 million annually.
financing funds and institutions. Accordingly, Foreign loans and grants rose from $428
the Arab funds offered over $ 650 million in million in 2000 to $853 million in 2004. China
loans for funding Merawe Dam Project. The topped the list of the Sudan funding countries.
United Nations specialized agencies have The repayment of urgent debts totaled 355
started since the 1990s to provide the equiva- million dollars in 2004.
Exports:
The Sudan exports the following com- gum arabic, sugar, meat, groundnuts, hides,
modities: oil products, gold, sesame, cotton, live animals, sorghum…etc.
Exports Values for the years 2002/2004 (millions of dollar):
- 1,949,115 (2002)
- 2,542,176 (2003)
- 2,719,125 (until September 2004)
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Investment Encouragement
Acts and Regulations:
Investment Encouragement Act was
issued in 1999 and amended in 2003.
Hereunder are some important features of
the Act:
- Complete exemption from customs du-
ties for capital projects.
- Freedom of capital transfer.
- Simplify procedures through a single
outlet (one stop shop).
- 5 to 10 years exemptions from profit taxes
for investment projects.
- Customs exemptions for strategic
projects and non-strategic goods.
- Strategic projects are given the neces-
sary land free-of-charge.
- Non-strategic projects are given land at
an encouragement price.
- The investor has the right to operate with-
out a Sudanese partner.
- No confiscation of property will occur ex-
cept through the legal system and after
payment of a reasonable compensation.
- The investor has the right to re-transfer
the capital in case the project isn’t ex-
ecuted or is liquidated.
- Transfer of profits and costs of finance
will be executed in the currency of import
and on the date due (after payment of the
legal duties).
- The project will be automatically included
in the registry of importers and exporters.
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
Free Zones
The government established two for foreigners who work at the free zones
free zones: Suakin on the coast of the and markets.
Red Sea and Al-Gaily, near Khartoum. - Complete exemption from all taxes for
The Free Zones and Markets Act 15 (renewable) years for the companies.
for 1994 includes the following - Freedom of capital and profits transfer.
privileges: - Freedom of employing local and foreign
- The right of full possession for foreign staff.
investors. - No restrictions on entry and residence
- Complete exemption from income tax visas.
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Potential Market - Sudan is member of COMESA.
With 33 million consumers inside - It makes efforts to join the International
the Sudan plus consumers of the Trade Organization and the Arab Free
neighboring countries, the real size of Trade Organization.
the market will be about 400 million
consumers.
The Private Sector
The private sector in Sudan is
Regional and International competent and is keen to participate in
Agreements development projects.
For enhancing investment The sector’s trade and industry
atmosphere the Sudanese Government chambers provide the investors with the
signed a number of regional and required investment information.
international agreements: According to the government
- Border commerce agreements and policies, this sector will be depended on
trade protocols with the neighboring by 75% to carry out development
countries. projects during the post war period.
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
Fields of INVESTMENT IN
Investment in AGRICULTURAL
Sudan FIELDS
Agriculture is the most important economic
resource in Sudan. Some 44% of the gross
a) Electricity projects domestic product in the year 2004 came from
b) Water and irrigation projects agriculture. The majority of the population depends
c) Metals. on this sector. The Sudan is considered one of three
d) Sea ports projects. countries that represent the major strategic food
e) River, air, and railways transporta-
tion projects.
f) Roads and bridges.
g) Partnerships with Sudatel.
h) Tourism projects.
i) Projects of the ministries of “Culture,
Youth and Sport“⁄and “Science and
Technology“.
j) Projects of State of Khartoum in the
fields of roads, bridges and waste-
water.
k) Animal Wealth projects.
l) Agriculture projects.
m) Projects of the River Nile and Red
Sea States.
n) Free zones projects.
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security sites in the world. The country has a vast 1. Irrigated agricultural projects on the banks of
arable land that estimated to reach 84 million the White and Blue Niles (cotton, groundnuts,
hectare besides diversified soils and climates. wheat, sugar- cane, vegetables, fruits,
Therefore, investment should be maximized in this spices).
field to boost the country’s development and help 2. Irrigation projects.
in the restructuring of its economy. 3. Underground water ≠ irrigated agricultural
The arable land in Sudan is estimated at projects.
about 200 million feddans and only 30% 4. Introduction of animal husbandry to the
approximately was being exploited. agricultural rotation.
The most important irrigated scheme in 5. Investment in horticultural field.
Sudan is Gazeera Scheme. Expanding on nearly 6. Investment in irrigated agriculture’s supporting
2,1 million feddans it is considered the largest projects.
irrigated farm in the world. 7. Rehabilitation and reorganization of rain-fed
The Sudan is known for its big wealth of agricultural projects.
water which comes from rain, rivers and 8. Establishment of new projects in the field of
underground resources. The country’s quota of cash crops such as oil seeds, cotton and
Nile water is 18,5 billion cubic meters. sorghum.
The forests cover 22% of the Sudan’s area 9. Cattle and meat marketing and expansion in
(53 million hectares) mostly in the South. poultry projects.
Projects Opportunities: 10. Dairy projects particularly in the plain areas
There are so many investment of central Sudan
opportunities in the agricultural field including the 11. Fishing companies that apply modern
following: techniques.
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
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In 1996, Higleeg ≠ Bashayer pipeline bpd in 1999 and rose to 300,000 bpd in
was opened to carry the crude oil from the 2004. Refineries have been established
production site to the seaport for exporta- in Khartoum, Al-Obied and Port-Sudan.
tion. With 1610 kilometers in length, it is Bashair1 port was established in
considered one of the longest pipelines in 1999 for exporting crude oil with the stor-
Africa. Its designing capacity is 450,000 age capacity of 3.2 million barrels and work
bpd. The oil pumping started with 150,000 is underway to build Bashair 2 with stor-
age capacity of 3 mil-
lion barrels in the first
phase. Work in Al-
Khair port for exporting
petroleum products
completed in January
2003 with the maxi-
mum capacity of
50000 tons. Sawakin
port for gas exports
has a pumping capac-
ity of 75 tons an hour
and storage capacity
of 1400 tons.
The Ministry of En-
ergy and Mining is will-
ing to intensify oil ex-
ploration in the coun-
try and welcoming any
genuine proposals to
invest in this area.
The Ministry is in-
volved in infrastructure
projects such as re-
newable energies and
integrated electricity
services that include
electricity power gen-
eration, transport lines,
distribution, mainte-
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
nance and marketing in addition to the ma- cies and endorsing agreements.
jor projects of mining, oil and gas produc- The Ministry is willing to intensify oil
tion. exploration in the country and welcoming
The Minister of Energy and Mining, Dr. any genuine proposals to invest in this
Awad Al-Jazz said there was a petroleum area.
council chaired by the President of the Re- Oil investments:
public and comprising a number of experts, Studies were being conducted to create
ministers and walis (governors) of the investment opportunities in oil sector
Southern Sudan states. The council would such as:
be replaced by the Petroleum Commission, - Petrochemical industry if the already
whose functions have been determined by discovered natural gas is produced.
the Comprehensive Peace Agreement. All - Oil products pipelines network.
necessary information will be provided to it - Asphalt production.
to embark on its work in mapping out poli- - Expansion of gas use.
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Animal Resources
Sudan possesses a external markets. tons per year of fishery re-
huge number of livestock that The number of cattle is serve as well as an ample
put it at the top of the list of estimated at 39.7 million number of wild life.
Arab and African countries in heads, 48.4 million heads of The contribution of ani-
this regard. This vast wealth sheep, 42 million heads of mal resources to the GDP is
is diversified and has com- goats, 3.5 million heads of about 20% and it generates
parative advantage to meet camels besides 37.3 million about 22% of the country’s
the demands of internal and heads of poultry, 110 million returns of foreign currencies.
Exports of Meat:
Year Camels Goats Sheep Cows Total
2004 57.4 217.1 1481.9 6329.4 7085.8
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
Electricity
The currently used electric
power supply is around 875
megawatts. There are many projects
aiming at generating extra electricity.
Hamadab Dam on the River Nile is
expected to generate 1200
megawatts. An increase of 15% is
expected during 2004 after the
implementation of reform
programmes using a loan of 70
million dollars from Arab funds and
financial institutions.
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Industrial Sector
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
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Processing Industry and diversified wood resources. There
This sector contributed 7% to the is also a possibility to produce com-
GDP and 8.2% in the years 2000 and pressed timber using remains of sugar
2004 respectively. industry, cotton, and peanut.
The processing industry is composed of Paper & printing industries:
22 main activities and 82 sub-activities. Sudan depends totally on paper im-
The most important industries ports despite availability of several cel-
are: lulose resources.
Food industries: Chemical industries:
They include 24 sub-activities. This sector includes 26 sub-activi-
There is surplus in sugar and sugar- ties. There are investment potentialities
based industries that could be exported. in this sector such as fertilizers and in-
Textile & ready-made clothes: secticides industries.
This sector includes 9 sub-activities Main metallic industries:
but its production is less than the local This sector includes 14 sub-activi-
need. ties. There is a need to invest in the fields
Hide tanning & leather products: of metallic ingots and iron.
There are investment opportunities Non-mineral products:
in this sector due to availability of ani- This sector includes 11 sub-activi-
mal hides. ties. There is high demand on the prod-
Timber industries: ucts of this sector. Some products such
There are investment opportunities as cement and marble could be pro-
in this sector due to the country’s vast duced for export.
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
Infrastructure and
Services Sector
Infrastructure and Services Sector:
There are several opportunities of investment
in this sector e.g. railways, roads, bridges, internal
river transport, civil aviation, air transport, sea ports,
telecommunication, education and health services.
Transport field needs 370 million dollars for
investment during the coming three years.
Among the roads that the government seek to
build are: Alssalam (Peace) Road which links Malakal
and Renk towns in southern Sudan and it costs 150
million dollars, Omroaba-Abujibaiha-Kadogli road in
western Sudan which costs 120 million dollars and
rehabilitation of river transport against 87 million
dollars.
The latest available statistics show the
contribution of the transport sector in the GDP stood
at 13% and 10% in the years 1999 and 2000
respectively.
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Telecommunications
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
Hotels
There are many hotels in Khartoum
State with different charges: A room in a five-
star hotel costs $190-210, presidential wings
costs $750, small wings $450, a room in a
four-star hotel costs $150-170 and a room in
There are about 26 national a three-star hotel costs $30 -60.
and foreign banks working under
the supervision of the Bank of Tourism:
Sudan, the central bank.
The Sudan has many tourism sites. The
Nile and its tributaries run across its land, the
Car Renting: Red Sea in the eastern part of the country,
Marra Mountain in western part, Dindir Park
There are more than 11 major for wildlife conservation, historical sites in
companies engage in limousine, mini-bus and northern part of the country and beautiful
taxi services. A mini-car limousine costs scenes in various other parts.
12,000 Sudanese dinars per day while a There are many investment
comfortable Land Cruiser costs 45,000 dinars opportunities in tourism and hotels field all
per day. over the country.
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Khartoum International Port Sudan Sea Port:
Airport:
The port is on the Red Sea coast 1232
The airport receives regular flights by
most of the international airways companies. kilometers from Khartoum via Medani road
The airport provides banking, transport, and about 700 kilometer via Atbara road. It
security, air cargo and shopping services. is the main Sudanese port.
Other Ports:
Swakin port on the Red Sea coast is used for transport of passengers particularly
pilgrims and goods. Bashayer is a
modern port near Port Sudan and it is
used for oil exports.
Medical Services:
Investment is needed in the fields
of the modern scarce specializations
such as kidney transplant and surgery,
heart, brain and malignant tumors and
projects of integrated hospitals that
contain all medical requirements.
Investment Map
The Ministry of Investment prepared an ment and sheds lights on comparative ad-
investment map explaining all available re- vantages of the various states.
sources that could be economically exploited, - It helps in promotion process to attract
services, financial resources, short-, medium local and foreign investors and enables
and long term plans, the suitable location for concerned authorities to direct invest-
any forms of investment and the required ments according to the country’s needs
measures to make these projects a success. and national strategy.
The investment map is important - It helps investors to prepare feasibility
because: studies and select the suitable field and
- It specifies the present and future invest- location for the investment.
ment fields, material, and human re- - It provides documented information that
sources. could be used in scientific research.
- It helps plan designers and implementers - It helps in solving procedure problems
taking appropriate decisions that stem from lack of unified view among
- It helps in putting macro policies that ful- the decision-making authorities with re-
fill the objectives of balanced develop- gards to investment.
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Special file on occasion of the convocation of the Arab Summit Conference in Khartoum (March 2006)
Arab
ogy has been used first in Agadi scheme in the
Blue Nile State and then in Al-Gadarif State
where it yielded high productivity rates particu-
larly in sorghum and sunflower crops.
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